Determine the price of a 6% coupon bond that matures in 20 years, given the market...

Determine the price of a 6% coupon bond that matures in 20 years, given the market rate for a similar quality bond is 8%.

(Use time value tables or a financial calculator.)

Expert Solution

We have to use financial calculator to solve this
Put in calculator

FV		1000
PMT	1000*6%	60
I		8%
N		20

Compute PV		($803.64)

ans =		$803.64

jeff jeffy answered 2 years ago

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